United Parcel Service (NYSE:UPS) on Thursday topped Wall Street estimates for quarterly profit and revenue as the COVID-19 pandemic led to a surge in home deliveries and health-care shipments.
The coronavirus outbreak has led to a boom in home deliveries of everything ranging from food to furniture and electronics and exercise equipment, as lockdown measures keep people at home.
The company also said demand for domestic residential delivery surged in the quarter, driving consumer shipments up 65.2%.
According to CEO Carol Tomé, "Our results were better than we expected, driven in part by the changes in demand that emerged from the pandemic."
Average daily volumes in the United States jumped 22.8% and reached 21.1 million packages per day, the company said, adding that it also saw strong outbound demand from Asia.
Atlanta-based UPS said net income rose 4.7% to $1.77 billion in the quarter ended June 30. Excluding items, the company earned $2.13 per share, beating estimates of $1.07 per share.
Revenue rose 13.4% to $20.46 billion, beating estimates of $17.48 billion.
UPS is not providing revenue and diluted earnings per share guidance due to the uncertainty around the timing and pace of the economic recovery. The company is unable to predict the extent of the business impact or the duration of the coronavirus pandemic, or reasonably estimate its operating performance in future quarters.
UPS popped $12.31, or 10%, to $135.99.
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